AI and Defense Innovations: Theoretical Propositions and Illustrations

This chapter examines the transformative impact of artificial intelligence (AI) on innovation dynamics within the aerospace and defense industries. It argues that AI constitutes a major technological and scientific breakthrough that is reshaping how military capabilities are conceived, developed, and deployed. Building on the theoretical framework proposed by Barbaroux (2019, 2020), the chapter analyzes defense innovation through three interconnected dimensions: the cognitive foundations of innovation, the sources from which innovation emerges, and the evolution of military doctrines and operational needs. The first dimension concerns the knowledge structures embedded in defense innovations. AI intensifies the scientific content of military technologies and reinforces the importance of dual-use knowledge that spans civilian and military domains. As a general-purpose technology, AI combines advances in computer science, data analytics, machine learning, and automation, creating new opportunities for capability development across a wide range of defense applications. The second dimension focuses on innovation sources. The chapter highlights the growing influence of actors and technologies originating outside the traditional Defense Technological and Industrial Base (DTIB). New entrants, exemplified by SpaceX and its Starlink system, demonstrate how commercial innovations can rapidly acquire strategic military significance and challenge established defense innovation models. The third dimension addresses the changing preferences of military users. Developments in networking, platform integration, and multi-domain command-and-control structures illustrate how evolving operational doctrines shape demand for AI-enabled capabilities. To assess the relevance of this framework, the chapter investigates five illustrative cases of military innovation incorporating AI. Drawing on an interpretive case-study methodology and a taxonomy of AI applications, the selected examples cover image recognition, autonomous vehicles, training and instruction, robotics, and autonomous weapon systems. These cases are used to evaluate three theoretical propositions concerning the complexity and scientific intensity of AI-based innovations, the changing origins of technological knowledge, and the influence of military doctrine on innovation trajectories. The chapter concludes that AI is not merely another technological component but a transformative force that alters the generation, application, and appropriation of knowledge throughout the defense ecosystem. By linking technological change, organizational adaptation, and evolving military requirements, the analysis provides a comprehensive understanding of how AI is redefining defense innovation and shaping the future development of military capabilities.